Ron Ruggless of Nation’s Restaurant News reports that after encountering fierce pushback from franchisees over its $1 double cheeseburger promotion, Burger King said it would raise the item’s price and introduce a new value sandwich in its place.Read More »
USA Today reports that Burger King(BKC) plans to launch a massive new coffee line as it tries to overhaul its breakfast menu and boost its slumping business.
The nation’s No. 2 burger chain will add Starbucks’ Seattle’s Best Coffee to all its U.S. restaurants in a phased roll-out that begins this summer, executives told The Associated Press on Tuesday.
Numbers tell a different story of whether a Burger King’s burger promotion helped boost profits. Franchisees say the promotion doesn’t drive enough sales to offset cost.Read More »
Burger King franchisees will get to hold onto their entire soda rebate funds for now, potentially crimping the burger chain’s plan to kick off 2010 with a beefier national ad presence. Franchisees in the coming weeks will receive the full rebate, earned from buying soda syrup, from Coca-Cola Co. (KO) and Dr Pepper Snapple Group Inc. ( DPS) as Burger King has deferred diverting up to 20% of those funds to its national advertising pool due to pending litigation, a Burger King spokeswoman said late Thursday. The February payment is one of two franchisees receive annually from the soda companies.Read More »
In an ongoing dispute that could affect how the nation’s hundreds of franchise organizations set prices, the burger chain is insisting that its two beef-patty sandwich be sold for no more than $1—in line with other items on its “Value Menu.” But the company’s franchisees claim that at that price, they lose money.Read More »
Elaine Walker reports in the Miami Herald that Burger King’s franchisees say they no longer “trust” or “have confidence” in current management, so they’re going directly to the company’s board of directors with their complaints. That was the message in a letter sent by the National Franchisee Association last week to Burger King’s board of directors. The board needs to take action to repair the relationship with franchisees, which has disintegrated to a level unheard of even for Burger King, the letter said. “Your management team has pushed the franchise community to the brink,” said the letter signed by 27 franchises, including the NFA board and the heads of 21 regional franchisee associations. “We are taking this extraordinary and historic action to communicate our concerns directly to the board.”Read More »
The Buffalo News Business Today reports that the Syracuse-based company that is the largest single owner of Burger King franchises is standing by the chain’s promotion of a cut-rate double cheeseburger, and is not participating in an uprising being mounted by many other franchisees. The National Franchisees Association, on behalf of 850 other Burger King operators around the country, has filed a lawsuit against the Miami-based Burger King Holdings Inc., protesting the corporation’s insistence that its franchisees offer double cheeseburgers for $1.Read More »
The Atlanta Journal-Constitution reports that Burger King Corp. has aggressively pushed its $1 double cheeseburger to attract price-conscious consumers, but the chain’s franchisees say the value pricing is costing them money. The National Franchisee Association, a Kennesaw-based group that represents more than 80 percent of U.S. franchised Burger Kings, filed a lawsuit this week against Burger King, a Miami, Fla.,-based chain, over pricing issues. The lawsuit, filed in U.S. District Court for the Southern District of Florida, seeks to prevent Burger King from dictating maximum pricing for the franchisees.Read More »